BarbriSFCourseDetails
  • videocam Live Webinar with Live Q&A
  • calendar_month April 16, 2026 @ 1:00 p.m. ET/10:00 a.m. PT
  • signal_cellular_alt Intermediate
  • card_travel Tax Law
  • schedule 90 minutes

Taxation of Cannabis: Overcoming Tax Challenges in Cannabis Business Operations, Key Planning Techniques

Entity Structure, Gross Income Inclusion, Section 280E, IRS Audits, Tax Issues in Raising Capital

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$294.95
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Discount expires 4/2/26

This course is $0 with these passes:

CLE
CPE
ALL
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About the Course

Introduction

This CLE/CPE webinar will provide tax counsel and advisers guidance on handling tax compliance issues and provide effective tax planning methods for businesses engaged in the cannabis industry. The panel will discuss key federal and select state tax law provisions impacting cannabis businesses, the impact of rescheduling cannabis from a Schedule I to Schedule III drug, Section 280E, and key tax planning techniques to avoid or minimize tax liability.

Description

The sale and distribution of cannabis for recreational or medical use has become a powerful economic engine generating billions in annual revenue with 34 states and the District of Columbia having some form of legalization of the substance. Despite state relaxation of marijuana prohibition laws, without careful planning, the taxation of regulated cannabis businesses can result in hefty tax assessments and penalties.

Cannabis businesses are accounting for and reporting the results of their operations with gross receipts, cost of goods sold (COGS), and other deductions just like other for-profit businesses. However, as long as marijuana remains a Schedule I controlled substance under federal law, these businesses must navigate the pitfalls of complex federal and state tax rules.

Under Section 61, all gross income must be reported from whatever source it is derived. However, under Section 280E, cannabis businesses cannot deduct rent, wages, and other expenses unless they are for COGS, resulting in a substantially higher tax rate than other companies on their income. This dilemma has been the subject of recent tax court cases and appeals and has since resulted in the initiative to reschedule cannabis from a Schedule I to a Schedule III drug.

Listen as our panel discusses federal and select state tax rules impacting the cannabis industry, recent tax court cases, Section 280E, rescheduling cannabis from a Schedule I to Schedule III drug, forfeiture, banking, and other related tax issues.

Presented By

Jonathan Kalinski
Principal
Hochman Salkin Toscher Perez, PC

Mr. Kalinski specializes in both civil and criminal tax controversies as well as sensitive tax matters including disclosures of previously undeclared interests in foreign financial accounts and assets and provides tax advice to taxpayers and their advisors throughout the world. He handles both federal and state tax matters involving individuals, corporations, partnerships, limited liability companies, and trusts and estates. Mr. Kalinski has considerable experience handling complex civil tax examinations, administrative appeals, and tax collection matters. Prior to joining the firm, he served as a trial attorney with the IRS Office of Chief Counsel litigating Tax Court cases and advising revenue agents and revenue officers on a variety of complex tax matters. 

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Dennis L. Perez
Principal
Hochman Salkin Toscher Perez, PC

Mr. Perez has extensive experience in the representation of clients in civil and criminal tax litigation and in tax disputes and controversies before the Internal Revenue Service and all the California taxing agencies. He was formerly a senior trial attorney with District Counsel, Internal Revenue Service, in Los Angeles, California.  Mr. Perez is a Certified Tax Specialist, California State Bar Board of Certification and is also a Fellow of the American College of Tax Counsel.  He frequently lectures on advanced civil and criminal tax topics at seminars and before national, state and local bar associations and accountancy groups. He is a co-author of the BNA Portfolio, Tax Crimes, has served as the Chair of the Los Angeles Lawyer Magazine Editorial Board and is the first recipient of the Los Angeles Lawyer Sam Lipsman Service Award for outstanding service to the Los Angeles Lawyer Magazine.  He is past Chair of the Tax Procedure and Litigation Committees of the Taxation Sections of the State Bar of California and the Los Angeles County Bar Association.  Mr. Perez is past President of the Alumni Board for the UCLA School of Law and has served as an Adjunct Professor, Golden Gate University, Graduate School of Taxation.

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Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

  • CPE credit is not available on recordings.

  • BARBRI is a NASBA CPE sponsor and this 90-minute webinar is accredited for 1.5 CPE credits.

  • BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).


  • Live Online


    On Demand

Date + Time

  • event

    Thursday, April 16, 2026

  • schedule

    1:00 p.m. ET/10:00 a.m. PT

I. Tax issues in operating a cannabis business

II. Planning strategies to minimize tax liability and avoid audits

III. Rescheduling cannabis from Schedule I to Schedule III drug

IV. Section 280E

V. Ownership structures

VI. Deductions

VII. Navigating IRS examinations of retail cannabis businesses

The panel will review these and other key issues:

  • Recent court decisions impacting the taxation of cannabis businesses
  • Application of tax rules to the cannabis industry and key planning techniques
  • Structuring the ownership of cannabis businesses to minimize tax
  • Key issues raised in IRS audits and methods to avoid them
  • Impact of rescheduling cannabis from a Schedule I to Schedule III drug
  • Effect of Section 280E and deduction of the cost of goods sold

Learning Objectives

After completing this course, you will be able to:

  • Understand the IRS' analysis and application of tax rules to the cannabis industry
  • Identify key issues resulting in IRS audits of cannabis operations and methods to avoid them
  • Recognize the impact of Section 280E on cannabis business operations
  • Field of Study: Taxes
  • Level of Knowledge: Intermediate
  • Advance Preparation: None
  • Teaching Method: Seminar/Lecture
  • Delivery Method: Group-Internet (via computer)
  • Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
  • Prerequisite:

    Three years+ business or public firm experience preparing foreign tax forms and schedules at mid-level within the organization, supervising other preparers/accountants. Specific knowledge and understanding of current rules for calculating taxable income of corporations and pass-through entities. Understanding of federal and state audit procedures, allocation and apportionment of income.

BARBRI, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

BARBRI CE webinars-powered by Barbri-are backed by our 100% unconditional money-back guarantee: If you are not satisfied with any of our products, simply let us know and get a full refund. Contact us at 1-800-926-7926 .